Mortgage Switching Calculator

Find out if you’ll be better off switching to another home loan and how long it will take you to recover your switching costs.

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, updated on August 8th, 2023       

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Refinancing your home loan can provide major benefits and can save you thousands of dollars in interest payments, but you’ll have to choose your new loan wisely.   Use our mortgage switching calculator to tell you exactly what you can gain by refinancing and see at a glance how much your savings will amount to over the years.

Savvy can help you make a great loan switching decision by comparing similar home loans to make sure you get the lowest possible interest rate.

Learn all about using our mortgage switching calculator

How do I use the mortgage switching calculator?

Our Australian refinance calculator is designed to compare the repayments you’re currently making on your home loan (at your current interest rate), with your potential repayments if you decide to switch your loan.  It will then calculate the savings you’ll achieve by switching, over the life of the loan.

Simply enter in the details of your existing loan and add your potential new loan’s details, including your new interest rate, and the calculator will give you the comparison repayment figures.

It will tell you how much you’ll pay in interest and fees if you:

  • stay with your current loan
  • switch to a lower interest rate and make smaller repayments
  • switch to a lower interest rate, but continue to make your current (higher) repayments

The home loan refinance calculator will also allow you to enter any switching fees you may be charged by your lender, and also any ongoing or regular fees which may come with your new loan.

Should you wish to change the repayment frequency of either your loan repayments or fees, click on the green square to the right of the entry column to choose between a weekly, fortnightly or monthly payment frequency.

The graph at the bottom of the loan switching calculator will show you the savings you could make by switching your loan.

Which mortgage switching fees will I have to pay?

If you refinance your loan from your existing lender to another lender, you may be charged a new mortgage application fee, which can range from $200 to $800.  However, if you stay with the same lender but switch your home loan, the lender may charge you a mortgage switching fee which covers the cost of the administration of changing your loan.  Switching fees can range from $200 to $650. 

It’s always worth talking to your lender and asking if they’ll waive your loan switching fee to hold onto you as a customer.  If they know you’re thinking of switching to another lender, they may offer you a better deal to keep your business.

If you do decide to exit a fixed rate loan early and go with another lender, you may be subject to early exit or break fees, which can amount to thousands of dollars depending on the time left to run on your loan.  Ask your lender if break fees will apply before making a switching decision and use Savvy’s loan switching calculator to find out how much you could save by refinancing your loan.

How often should I refinance my mortgage?

This will depend on your personal circumstances and the sort of mortgage deal you currently have.  Most mortgage brokers recommend you take a look at your home loan regularly (at least every year or two) to make sure you’re keeping up with trends in interest rates and different loan features available in Australia. The calculator is a useful tool to help you make an informed decision about refinancing.

Savvy can give you the information you need to intelligently compare home loans and keep an eye on current market trends so you get an idea of how competitive your home loan really is.  Use Savvy’s home loan refinance calculator to work out what you could save by switching your mortgage.

Why do people refinance their mortgage?

Here’s more of your frequently asked question about switching mortgages

Is there a limit to how often I can refinance my mortgage?

No – it’s well worth taking a look at your mortgage quite frequently to make sure your loan is still the right one for your particular needs.  Savvy can provide you with the most current information about home loan interest rates and features from our lending partners, so you can make an informed decision on your current loan before switching your mortgage.

Will switching my home loan affect my credit rating?

Multiple credit enquiries in quick succession will show up on your credit report, which is why it’s important to choose the most appropriate lender to approach before you make your loan application.  However, credit enquiries alone will not negatively affect your credit rating unless you get a series of loan rejections, which will negatively affect your credit score and may make you less appealing to lenders.

How long does it take to refinance a home loan?

If you stay with the same lender when you switch your home loan, you should get an answer from your lender quite quickly, with the process taking as few as one to two weeks.  A full loan application with a new lender can take longer, so allow up to a month.

If I refinance with the same lender, will I still have to pay switching fees?

That will depend on your particular lender.  Some will charge a switching fee, but other lenders may be prepared to waive switching fees to keep a good customer satisfied.  Talk to your lender and ask if they are prepared to waive switching fees.

If I change lenders, will I have to submit all my documents again?

Yes – changing lenders will involve you making a whole new mortgage application, including providing documentation to prove your ID, income, expenses, assets and more.  Your new lender will require all the same information as you provided when you first made your home loan application.

Is it possible to avoid fixed-rate break fees?

Probably not – if you have a fixed-rate home loan and are considering changing to another loan with a different lender, you won’t be able to avoid an early exit fee in most cases.  You may have to either wait for the fixed term of your loan to expire or pay the exit fees.

Can I extend my home loan term with a refinance?

Yes – it’s quite possible to extend your loan term back up to a maximum of 30 years if you refinance, although this will depend on your age, how much of your initial loan you’ve already paid off and your current financial income and circumstances.  You may look to do this to reduce the cost of your monthly repayments, but bear in mind it’ll increase the amount of interest and fees paid overall.

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